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Company Publication Material 1997 Revenue
Readers Digest Magazines, and educational, $2,839,000,000
Association condensed, and popular books,
recorded music collections, and home
videos
Scholastic Corp. Children’s books and classroom and966,300,000
professional magazines
Touchstone Applied Reading and English testing materials 4,588,000
Science Associates
Wiley (John) & Sons Professional and reference works,431,947,000
consumer books, and textbooks
From publicly reported financial information relating to the
above public companies, respondent’s expert calculated four
financial measurement ratios applicable to each company --
namely, stock price to net income, stock price to cashflow, stock
market value to book value of tangible and intangible assets, and
stock price to revenue.
Applying the ratios so calculated to the 11 companies,
respondent’s expert calculated the median ratio for each
measurement, and he applied that respective median ratio as a
multiple to TPC’s 5-year (1993-97) average annual net income,
cashflow, book value, and revenue as follows:
Net Income Cashflow Book Value Revenue
TPC 5-Year
Average $ 13,259,000 $ 15,187,000 $148,606,000 $235,995,000
Multiple Based on
Median Ratio
for 11 Public
Companies 25.9 14.3 2.5 1.04
Total for TPC $343,659,000 $216,780,000 $364,787,000 $245,681,000
Using the $216,780,000 (rounded to $217 million) calculated
above for the cashflow ratio (apparently because the cashflow
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